Do IT industry ad reports cause marketers to reevaluate their marketing strategies?

Tech businesses reported varying levels of revenue from advertisements during this earnings season, and that could potentially change how marketers view their marketing mix.

According to experts, because there is a greater chance of success, advertisers are attempting to concentrate on larger and more dynamic platforms for client growth.

While smaller competitors Pinterest and Snapchat struggled to impress investors as ad growth fell short of their forecasts, Alphabet reported better-than-expected ad income, while Meta's ad impressions for the reported quarter increased by 26% year over year.

For brands, choosing the marketing mix for a specific campaign or product has always been crucial, both artistically and financially. What impact do tech earnings this quarter have on brands and their long-term marketing plans? We consulted subject matter specialists.

Making the best decision

Industry executives believe it is more important for a platform to be dynamic than it is for tech companies to leverage fresh ideas to entice advertisers to their platforms. It's crucial to consider carefully where you spend your money and how it might support the long-term expansion of the business.

Companies ought to invest, in the opinion of Siddharth Dabhade, Managing Director of MiQ India, China, and SAARC.

 "The success of Alphabet and Meta can be explained by their capacity to offer users-specific advertising. These businesses can deliver highly targeted adverts to individuals based on their interests and behavior thanks to AI and machine learning technologies.

"Brands with the ability to deliver targeted advertising are probably going to get better outcomes. The decline in Snap's and Pinterest's advertising revenue emphasizes the difficulties encountered by niche platforms. If these platforms are unable to offer the same amount of audience reach and targeting as bigger platforms like Google and Facebook, they may find it difficult to draw in advertisers.

"Brands may need to invest in advertising platforms that can provide better targeting options and be more selective in their platform selection."

According to Kumar Awanish, Chief Growth Officer of Cheil India, "Every agency and every advertiser is thinking of economic slowdown and recession globally." while discussing the impact of the current economic downturn on the decisions that advertisers are making. Everyone is the same in that regard. Since everyone aspires to be future-ready, that has undoubtedly had an impact on the advertising budget from the advertiser's perspective as well. But because their search engine is so important, Google did not notice that much of an influence. That platform is driven by intent.

This implies that if a marketer wants to reduce their spending on advertising, they will start by reducing the awareness component. However, because Google search is intent-driven, this awareness is already present, which is why people use it for searching.

"That is one area where advertisers won't want to reduce their spending unless there is a very clear and severe issue. Since that is bringing in money for you, you should allocate all of your budget there.

According to Shradha Agarwal, Co-Founder & CEO of Grapes, the marketing mix for any brand depends on its message and the audience it is trying to reach. "This blend typically includes a well-balanced mix of several digital and social media platforms, like Snapchat and Pinterest, for a more wide message. The two platforms, however, don't appear to have anything novel or inventive to offer to businesses or the public, according to the most recent data. Snapchat, a pioneer of filters and the "story" format, currently lacks a unique selling point that makes it stand out from other platforms, which is shown in its declining ad revenue.

Abhishek Banerjee, Director of National Sales at AdOnMo, discusses how businesses can use newer platforms like DOOH to come up with creative methods to engage consumers. "The inconsistent quarterly performance of tech companies has significant ramifications for brand marketing strategies. It emphasizes the value of varying marketing tactics and avoiding reliance on a single advertising platform.
Brands must take a multi-channel approach, utilizing a variety of channels and media to successfully reach their target demographic. With the addition of Digital out-of-home (DOOH) advertising to its Display and Video 360 ad planning tool, Google has been a champion of new channels in particular, making it simpler for planners to manage multi-channel campaigns.

Naturally, firms would also need to adopt more modern digital channels for connecting with consumers, such ambient DOOH, which increases the media multiplier effect by connecting with consumers in real-world settings.

Awanish from Cheil India continues, "At the moment, advertisers are focused on the important indicators rather than vanity metrics.  Pinterest or Snapchat will likely be used to promote vanity, which is only beneficial when you have enough money and a huge marketing budget. However, if your money is tight, you'll likely choose what is most important to you.